MISSISSIPPI LEGISLATURE

REGULAR SESSION 2013

To: Rules By: Representatives McLeod, Eaton, Reynolds, Alday, Aldridge, Bailey, Bain, Banks, Baria, Barton, Beckett, Bell, Bennett, Bounds, Boyd, Broomfield, Brown (66th), Burnett, Busby, Byrd, Calhoun, Carpenter, Clark, Clarke, Cockerham, Coleman (29th), Coleman (65th), DeLano, Dickson, Dixon, Ellis, Evans (43rd), Evans (70th), Flaggs, Frierson, Gunn, Hamilton, Haney, Harrison, Hines, Holland, Holloway, Horan, Howell, Huddleston (15th), Johnson, Lamar, Lane, Martinson, Massengill, Mettetal, Middleton, Miles, Moak, Monsour, Morgan, Myers, Nelson, Oberhousen, Patterson, Perkins, Pigott, Read, Rogers (61st), Rushing, Scott, Smith (39th), Staples, Steverson, Straughter, Stringer, Sullivan, Taylor, Thomas, Warren, Watson, Weathersby, White, Williams-Barnes, Young, Zuber, Powell, Kinkade

HOUSE CONCURRENT RESOLUTION NO.

109

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A CONCURRENT RESOLUTION MEMORIALIZING THE UNITED CONGRESS TO ENACT THE MARKETPLACE EQUITY ACT OR THE MARKETPLACE FAIRNESS ACT. WHEREAS, in 1992, the United States Supreme Court issued its decision in the case of Quill Corporation v. North Dakota, ruling that states could not collect sales tax from businesses that lacked a physical presence within their borders; and WHEREAS, this ruling was based on the theory that states' collection of sales tax on these businesses was a burden on interstate commerce; and WHEREAS, at the time of the ruling, the decision primarily affected catalogue sales; and WHEREAS, in 2012, the nation's commercial marketplace has drastically changed, and online sales are now worth $150 billion annually; and WHEREAS, although consumers are not officially excused from paying sales tax on online sales, the overwhelming majority do not
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pay sales tax on making an online purchase, and a University of Tennessee study concluded that billions of state sales tax dollars are lost due to nonpayment; and WHEREAS, not only are states denied much-needed revenue during these difficult economic times, but local retailers must confront competition from huge merchandisers that lack the overhead expenses of a traditional store and are effectively offering their merchandise tax-free; and WHEREAS, although in 1992, the United States Supreme Court forbade the state of North Dakota from collecting sales tax from the Quill Corporation, the court held that Congress could enact legislation granting the states the authority to collect sales tax from retailers with no physical presence in a state; and WHEREAS, in order to establish an administrative foundation for the universal collection of state sales tax, many states, including Mississippi, have adopted the Streamlined Sales and Use Tax Agreement; and WHEREAS, nationwide, over 1,800 online or remote sellers are now voluntarily collecting state sales tax, and although this is a positive step, it does not address the problem of the nonpayment of state sales tax comprehensively; and WHEREAS, H.R.3 179, the Marketplace Equity Act, was introduced on October 12, 2011, by United States Representatives Steve Womack and Jackie Speier, and S.l832, the Marketplace

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Fairness Act, was introduced on November 9, 2011, by United States Senators Michael Enz, Richard Durbin and Lamar Alexander; and WHEREAS, the economic vitality of the states demands that Congress enact the Marketplace Equity Act or the Marketplace Fairness Act before final adjournment of the 112th Congress: NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES OF THE STATE OF MISSISSIPPI, THE SENATE CONCURRING THEREIN, That the Legislature of the State of Mississippi urges the United States Congress to enact legislation necessary to provide states the power to enforce collection of existing taxes. BE IT FURTHER RESOLVED, That the United States Congress is urged to pass the Marketplace Equity Act or the Marketplace Fairness Act. BE IT FURTHER RESOLVED, That a copy of this resolution shall be transmitted by the Office of the Secretary of State of the State of Mississippi to the President of the United States Senate, the Speaker of the United States House of Representatives and to each member of the Mississippi Congressional delegation.

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~ OFFICIAL ~ ST: U.S. Congress; urge to enact the Marketplace Fairness Act.